From the Associated Press:

By LYNN ELBER
Associated Press

Los Angeles, Calif. — A breakthrough in contract talks has been reached between Hollywood studios and striking writers and could lead to a tentative deal as early as next week, a person close to the ongoing negotiations said Saturday.

The two sides breached the gap Friday on the thorniest issues, those concerning compensation for projects distributed via the Internet, said the person, who requested anonymity because he was not authorized to speak publicly.

A second person familiar with the talks, also speaking on condition of anonymity because he wasn’t authorized to comment publicly, said that significant progress had been made and a deal might be announced within a week.

The people did not provide specific details on the possible agreement. Major points of contention include how much and when writers are paid for projects delivered online after they’ve been broadcast on TV.

The studios have been insisting that programs be streamed online for a certain period, deemed promotional, during which writers would forgo residuals. When payment kicked in, the companies sought to limit it to a flat $1,200 fee, while the guild wanted a percentage of a distributor’s revenue.

The Writers Guild of America did not immediately reply to a request for comment. The Alliance of Motion Picture and Television Producers, the trade group representing the studios, declined comment, citing a news blackout agreed to by both sides during the talks.

Guild leaders have said they are fighting for a piece of the future, reflecting the widespread belief that Internet-delivered entertainment fare would inevitably claim an increasing and perhaps even dominant market share.

Although work remains to be done on elements of the agreement, prospects for a deal appeared solid, said those close to the situation. The tentative agreement would have to be approved by a majority of guild members.

The guild, whose 3-month-old strike has brought the entertainment industry to a standstill, began informal talks with top media company executives Jan. 23 in an attempt to reach a new deal covering governing work for film, TV and digital media.

Negotiations between the guild and alliance negotiators collapsed Dec. 7 after the alliance demanded that proposals for unionization of animation and reality shows be taken off the table. The guild refused.

During the negotiations impasse, the Directors Guild of America began its own talks with studio chiefs and swiftly reached a tentative deal that was announced Jan. 17 and covered some of the digital media issues key to the writers guild.

Major studio executives called on the writers guild to begin informal talks, which essentially are standing in for formal negotiations, according to those familiar with the situation.

The guild extended its own olive branch before the informal talks started by withdrawing the reality-animation unionization proposal and by deciding to keep pickets away from the Grammy Awards. It has since decided to allow the music ceremony to proceed with full union support.

However, the fate of the Feb. 24 Academy Awards has remained in question, with the guild so far declining to grant its blessing to the show. A union refusal to cooperate with the Golden Globes decimated the ceremony, which was boycotted by supportive actors.

Oscar organizers and producers have vowed they will stage some type of show, with or without union support — but a writers guild deal would allow this ceremony to proceed in its full, star-studded glory, providing an invaluable promotional showcase for movie studios and their films.

Please, please, please. I NEED all 16 episodes of Lost.

Amen. Is it going to be a huge problem for them to get filming done in time to air this season?

Not if the strike ends relatively soon.

Yep. I remember reading in an issue of EW that if the strike was resolved by early Feb. most shows could ramp back up and get out another half dozen episodes for the season. I think it said if it dragged on to March to kiss the season goodbye though.

Truth.

This is great news.

My impression from reading the recent news stories about Lost and the associated comments from the producers was that they had made the decision early on, when a strike was looking very likely, for this season to be 8 episodes only. That is, the storyline was planned out to be wrapped up in a complete season that consists of only 8 episodes, rather than just ending all of a sudden. There was definite talk of exactly 48 episodes remaining, with this season being 8 and the next 2 being 20 each. Maybe I'm wrong? Or maybe I'm right and they can change it back with rewrites anyway? I'm not sure.

It all depends on when exactly the contract is hammered home and done with. But many of the studios already called it a season. Heroes and Friday Night Lights for example are already set to release the dvd sets of the episodes that have aired as "season 2"

Screw Lost. I just want The Shield to start airing.

I thought the producers of the show were complaining out ending the show after eight episodes this season? Supposedly, the eighth episode has an absolutely terrible cliffhanger that was meant to be resolved in the following week rather than several months.